London – [March 29, 2001]: The London office of Sustainable Forestry Management (SFM) has concluded a transaction involving the purchase of emissions reduction offsets through reforestation of tribal lands of the Confederated Salish and Kootenai Tribes of Montana. The proceeds from this transaction will be used to reforest land that was decimated by forest fires in 1994.  The trade was facilitated by the Montana Carbon Offset Coalition, which is helping farmers and foresters participate in the emerging carbon markets.

The official announcement of the transaction was made today in Washington, D.C. by Dr. Richard L. Sandor, Chairman of SFM, while testifying at a Hearing on Environmental Trading at the U.S. Senate’s Agriculture, Nutrition and Forestry Committee. 

A total of 47,972 tons of CO₂ equivalent (net-of-buffer) will be sequestered over an 80-year period through reforestation of 100 hectares (250 acres) of high-altitude pinelands on the reservation of the Salish and Kootenai tribes of northwest Montana. An investment by SFM will fund the reforestation of the land that was originally forest but was destroyed by fire in Sanders County, Montana. Carbon storage on the site will be maintained for 100 years.

The transaction is the first trade in greenhouse gas emission reduction offsets involving carbon sequestration efforts on Native American lands. Chicago-based Environmental Financial Products, LLC arranged the transaction and advised both parties. This groundbreaking trade will be monitored by tribal foresters, applying Winrock International methodologies.

This transaction also helps produce other environmental and social benefits such as improving soil quality, protecting the region’s ecosystem and providing a source of revenue streams to local communities. 

Dr. Richard L. Sandor, Chairman of SFM, stated: “Society cannot get on the path to environmental sustainability if we don’t improve our management of fore sts and soils worldwide. This path breaking international transaction is a statement of how reforestation can advance the global carbon market and help address climate change while improving the socio-economic conditions of local communities.”

Mr. Tom Corse, Supervisory Forester for the Confederated Salish and Kootenai Tribes stated: "The Confederated Salish and Kootenai tribes have been working with the Montana Carbon Offset Coalition for several years to bring a market-based carbon sequestration program to life.  This first project will set the stage for a process that will help fund chronically under-funded tribal reforestation projects throughout the west and start the ball rolling on market-based solutions to global warming.  The Tribes are pleased to be part of this win-win effort." 

Mr. Larry Van Rinsum, Executive Director of the Montana Watershed Inc. noted: “The Montana Carbon Offset Coalition (MCOC) is pleased to be involved in a transaction which will set the stage for a new commodity market to be born. The MCOC feels this transaction will open the door to domestic as well as international carbon emitting companies to mitigate their CO₂ emissions in the most cost-effective manner. By establishing a private market for carbon emission reduction credits, carbon-emitting companies now have the opportunity to aggregate credits in anticipation of stricter regulations and make the first important step in reducing greenhouse gas concentrations and improving the overall health of the eco-system. Carbon sequestration represents one of the most effective tools now available to combat global warming.” 

About the Confederated Salish & Kootenai Tribes:

The Flathead Indian Reservation (2,500,000 acres) is home to the Confederated Salish and Kootenai Tribes. The tribes consist of a confederation of Salish and Pend d'Orielles Tribes and the Kootenai. Of the approximately 6,800 enrolled tribal members, approximately 3,700 live on or near the reservation. The reservation is located in northwestern Montana on the western slope of the Rocky Mountains. The tribal headquarters are in Pablo, MT.  

Sustainable Forestry Management is an international company dedicated to making selective investments in sustainable forestry projects in the areas of carbon sequestration, biodiversity and ecotourism that yield environmental as well as social benefits.  

The Montana Carbon Offset Coalition supports carbon sequestration through market-based conservation programs. The coalition currently offers a range of program services to allow Montana farmers and foresters the opportunity to participate in the emerging carbon markets. 

Chicago-based Environmental Financial Products, LLC is a boutique investment bank and consultancy that specializes in the design and implementation of market-based environmental protection programs.